Read in the Digest
- Bitcoin Drops Under $48k as Dominance Drops Below 40% Ahead of $6 Billion Expiry, Shiba Inu Overtakes Bitcoin on Google.
- OpenDAO’s SOS Token Sets New Market Cap Record for Airdrop Tokens.
- South Korea to Block P2E Games, Metaverse and NFTs Lead Nation’s 2021 Gainers.
- Aave Takes Real-World Assets as Collateral, Now Third-Largest DeFi Protocol.
Bitcoin Drops Under $48k as Dominance Drops Below 40% Ahead of $6 Billion Expiry, Shiba Inu Overtakes Bitcoin on Google
Bitcoin is teetering on the brink of what would represent its worst monthly drop since May. Over the last 6 weeks, the price of Bitcoin has steadily declined and another sharp drop in December has once again pushed the crypto’s price below$48k.
The 30 day price chart for Bitcoin (BTC). Source: Tradingview
Over the last 24 hours, the price of Bitcoin has dropped by 5%, now trading at $47,488 at the time of writing. The sharp price slump has seen Bitcoin’s dominance over the crypto market drop to less than 40%. Bitcoin’s dominance, which was standing proud at over 70% in January, is now only 38.1%.
The decline comes as news emerged that a total of 129,800 options contracts worth more than $6 billion are set to expire on Friday. Ahead of the options expiry, bearish sentiment has gripped Bitcoin investors, with predictions pointing to “max pain” for investors in the coming days.
- 2021’s breakout meme coin, Shiba Inu, has surpassed Bitcoin to become the most viewed crypto on Google in 2021.
OpenDAO’s SOS Token Sets New Market Cap Record for Airdrop Tokens
Non-fungible token (NFT) traders got an early Christmas surprise on December 25th as OpenDAO (not to be confused with the stablecoin minting protocol by the same name), a newly formed decentralized autonomous organization (DAO), began distributing free tokens to users of OpenSea.
While airdrop tokens are not a rarity in the cryptoverse, SOS token has set a new record to be beaten. 24 hours after its launch, OpenDAO’s SOS Token had topped a market cap of $320 billion when the token reached its all-time high of $0.000009001.
The market cap of OpenDAO’s SOS Token. Source: CoinGecko
According to OpenDAO, the goal of the project and its SOS token is “to pay tribute, to protect, to promote” the NFT community. Of the 100 trillion SOS tokens, 50% will be airdropped to OpenSea users who had transacted on OpenSea before December 23rd. 63.6 trillion SOS tokens have already been claimed.
- After a blistering start, SOS has cooled off, with its market cap now hovering at around $182.2 million.
The price chart for OpenDAO (SOS) since launch. Source: CMC
Why You Should Care
Experts have warned investors to exercise caution, despite an immaculate start, as the project lacks a clear roadmap and discernable objectives.
South Korea to Block P2E Games, Metaverse and NFTs Lead Nation’s 2021 Gainers
South Korea has turned to P2E (play to earn) games, through which players can earn money, as it seeks to establish itself as the world’s leading crypto regulator. However, while P2Es have been gaining global popularity, South Korea’s government would see them prohibited.
The Game Management Committee has requested that global app marketplace operators, such as Google and Apple, block the registration of games that require in-app purchases before users can play. This follows a crackdown by the GMC on P2E games in relation to age ratings.
- Despite the crackdown on P2Es in South Korea, six of the nation’s 10 best-performing stocks in 2021 are linked to the metaverse or NFTs.
- Blockchain game developer ‘Wemade Max Co.’ leads the way, as its stock gained by 1,500% in 2021.
Why You Should Care
Despite the tightening regulations, cryptocurrencies remain legal in South Korea – an example many countries are looking to follow in 2022.
Aave to Accept Real-World Assets As Collateral, Now Third-Largest DeFi Protocol
Regardless of the undeniable growth of decentralized finance (DeFi) protocols, by and large the sector remains closely tied to cryptocurrencies. Standing out from the norm, DeFi protocol, Aave will now allow users to put up real-world assets as collateral for loans.
On December 28th, Aave announced a centrifuge to help the tokenization of assets like freight invoices, bridge loans, and trade receivables. After these assets have been tokenized, their owners will be able to use them as collateral for loans from Aave.
The list of services is not the only thing expanding on Aave. In the last week, the gains recorded on Aave, as the Swiss-based SEBA Bank was added as a whitelister, pushed the total value locked in the project to over $12.1 billion.
The 1-year TVL chart for AAVE. Source: DappRadar
According to DappRadar, Aave is now the third-largest DeFi project. Over the last 7 days, the number of new addresses jumped by 37.12%, while active addresses were up by 18.01%.
- The governance token of the project AAVE is experiencing a sharp decline. Over the last 24 hours, AAVE has dropped by more than 13.50%.
Why You Should Care
The inclusion of real-world assets into the DeFi protocol demonstrates the range of use cases for DeFi protocols, and that they have the potential to facilitate real-world change.